How To Get A Short Term Loan If You Have Bad Credit

Having a blot or two on your credit history can be inconvenient when it comes to asking for a short term loan. And it can happen easily – a few late payments on your mobile phone contract or credit card bill, or maybe you hit a rough patch financially and ended up with a County Court Judgement (CCJ).

Fortunately, some lenders do make provisions for people who have a bad credit history, but want to take out a loan. It’s not all good news though – interest rates vary widely, some lenders will try to lock you into a long term agreement, while others might demand so much form-filling that by the time your money comes through, it’s too late.

It’s also worth noting that a bad credit loan might help you to rebuild your credit score.

If it’s a short term loan you’re after, you have several options, each with pros and cons:

Existing bank

might be sympathetic, want to keep your business

form-filling, credit check required

Other sub-prime lender

will undoubtedly be interested in your custom

interest rates could be high, credit check required

Payday Loan

quick and convenient

very high interest rates, can have hidden or unexpected charges

Pawnbroker or similar

local and convenient, asset secured, so no credit or affordablity checks

you have to do without the item until you’ve paid off the loan

Logbook Loan

quick and convenient, competitive lending rates

you need to own your own vehicle

Credit union

competitive interest rates, small loans available

form filling – detailed credit history required

Tips for borrowing with bad credit

Go to an established lender with a good reputation

Compare their level of customer care as well as their interest rates

Make sure their terms and conditions are clear – and you understand them

Opt for a secured loan (like a Logbook Loan or a pawnbroking loan) for the best interest rates

Don’t get quotes from multiple lenders who will run a credit check and leave a footprint on your credit history

Check they are regulated by the Finance Conduct Authority (FCA) and a recognised trade body like the Consumer Credit Trade Association (CCTA)

Sensible borrowing

People apply for a Logbook Loan or other form of short term personal loan for various reasons – a temporary cash flow issue, an unexpected cost, an emergency. If you do need a fast and affordable loan and don’t want your credit score to affect your decision, then this may be a suitable option for you.It’s important that you know where to get help if you find that cash flow is becoming a serious monthly issue, or you think you have a debt problem. There are plenty of places you can get free advice about debt and money management – try the Money Advice Service or Step Change for example, or make an appointment at your local Citizens’ Advice Bureau.

If you do need a fast and affordable loan but you’re worried about your previous poor credit history, vist our page, how Logbook Loans work, to find out if this type of short term borrowing is suitable for you.

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Authorised and regulated by the Financial Conduct Authority under number 677922. Auto Advance Logbook Loans is a trading name of DTW Associates Limited, registered in England and Wales under number 05305220. Registered address: Ashford House, 41-45 Church Road, Ashford, Middlesex, TW15 2TY.

* Cash within hours: applies to enquiries that are submitted on working days before 2:30pm, whilst allowing for administration, underwriting and processing. However, we are able to process enquiries outside of regular working hours at customers' place of work or household. This is entirely dependant on customers' needs.